GAME woes

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Snowy
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Re: GAME woes

Postby Snowy » Mon Apr 16, 2012 7:54 am

How did they ever go bust?

](*,)
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Re: GAME woes

Postby Achtung Englander » Mon Apr 16, 2012 8:50 am

=D>

and they wonder why they are losing money. As Alan Sugar said one time on the Apprentice - I can sell tenners for nine quid will make me bloody popular
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Tank
 
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Re: GAME woes

Postby Tank » Mon Apr 16, 2012 9:27 am

Can I point out that he traded for CREDIT!

So that has NOTHING to do with money. Either way he has to spend that back in the store. So ok they may not be getting cash in till but they are getting stock to sell.

They win well there!
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Re: GAME woes

Postby Achtung Englander » Mon Apr 16, 2012 9:47 am

O...K....but they are still losing money because they are paying too much for old stock that will allow the consumer to buy new stock via in-house credit. They could of made more money selling that Vita if they did not pay credit for a game a consumer can get elsewhere a lot cheaper

So although the final purchase will be made in GAME they still lost real money because they sold the Vita with credit that they gave away far too cheaply.

At the end of the day if a company loses money it is either because its costs of sales is too high or its revenue is too low. In this case GAME loses money because it is doing both
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Tank
 
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Re: GAME woes

Postby Tank » Mon Apr 16, 2012 10:48 am

Your wrong but to be honest I cant be bothered to explain it to you or at worst argue.
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Re: GAME woes

Postby Snowy » Mon Apr 16, 2012 10:56 am

Sorry Tank I don't see it myself. I know you have a soft spot for GAME as an ex(?) employer of yours, but offering a higher price for something that you should loses you money which ever way you slice it, store credit of real world £££ - granted store credit has a lesser value than actual cash but only by a margin.
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Re: GAME woes

Postby Achtung Englander » Mon Apr 16, 2012 12:49 pm

Hi Tank - I will agree with you if the GAME shop BoggyB visited can sell his second hand Mass Effect for more than £15 and his Mass Effect 2 for more than £18 than they would have made money BUT this is the crux of the problem they are selling Mass Effect 1 for £10 and Mass Effect 2 for £10 online (I just checked) so no matter how you cut this - be it with instore credit or real money GAME has just subsidised BoggyB's purchase of a Vita

How is this going to make money for GAME ?

The only way they can make money on this is if they sell BoggyB's games to some sucker for more than £15 and £18 respectively. Given that the games are back catalogue and that most consumers are pretty savvy on prices this smacks as a loss.

I am not trying to get one up on you I am trying to understand why GAME management don't just give store independence and run the bloody business as a franchise - than most if not all their problems can be addressed. Demand and footfall will determine success or failure per shop
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Re: GAME woes

Postby Tank » Tue Apr 17, 2012 10:47 am

Its ok. Your right I know you right.

Snowy hit it on the head when he mentioned my "soft spot" for GAME. I cant ignore the facts but it still makes me very sad to see some people reactions the GAME's recent trouble. I think I mentioned it in another post but I think a lot of people are very misinformed when they make statements about GAME. For me that isnt just a faceless store of corporate limb. Thats a place I have a lot of good memories attached to with people mean a lot to me.

Its ok though. Its just some personal I need to deal with and move on with.

Sorry to break up the flow of the thread.
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Re: GAME woes

Postby Achtung Englander » Tue Apr 17, 2012 11:20 am

its OK mate - like you I work in the industry and so it comes with sadness to see the retail arm taking such a beating. I am annoyed that management did not take concrete steps back in 2010 to do something that could save the bulk of the business. Digital is by no means strong enough to warrant a collapse in retail sales. GAME faced problems from the likes of Amazon and Play.

The diagnoses of their demise has been covered pretty conclusively. The fact that GAME management could see it coming and did literally nothing is unforgivable. Given the 100 year anniversary of Titanic it is fitting to say you simply do not go full steam ahead when you know there are icebergs out there. They should have closed multiple shops in towns and re-launched their reward scheme that actually paid out. Like for every new game you buy you get 15% off your next purchase. So if you bought 6 new games you get the 7th for free - something like that. Than I think you would see GAME staying in with a fighting chance and not just rely so much on pushing pre-owned which at the end of the day brought the company to its knees.
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Re: GAME woes

Postby Achtung Englander » Tue Jul 24, 2012 1:20 pm

Can someone explain how this makes economic sense

http://www.mcvuk.com/news/read/game-rev ... eal/099988

By trading in your old 3DS for the new 3DSXL you get £100 off. The existing 3DS is £153 - so for GAME to make money they need to sell an old 3DS at least £101 which is 2/3 the price of a brand new one - which they bought wholesale from Nintendo and need to sell anyway unless they negotiated a deal with Nintendo to get their money back on unsold stock (and I do not see Nintendo agreeing to that).

I just don't get it. You walk into GAME and want a 3DS. They push you to buy a second hand device which is probably £30 - £40 cheaper than a brand new unused one (which is left unsold anyway). :?
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Re: GAME woes

Postby DjchunKfunK » Tue Jul 24, 2012 1:29 pm

They will hope to make up the difference by selling you extra games and accessories to go with the 3DS XL. Plus by getting in a pre-owned console, which they can then sell on, they are hoping to get further game and accessory sales from whoever buys up the pre-owned 3DS. By offering a console at a lower price you are more likely to get people to trade up from a DS. Plus Game makes very little money on the sale of hardware so even getting an extra £10 for the preowned 3DS is good business for them.
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Re: GAME woes

Postby Achtung Englander » Tue May 24, 2016 7:07 pm

20% decline in stock price in 1 week

http://www.gamesindustry.biz/articles/2 ... -in-a-week

I have not seen their financials in a long time because my day job is now 100% USA focus, but I cannot imagine it's healthy
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Re: GAME woes

Postby DjchunKfunK » Tue May 24, 2016 7:10 pm

Wasn't it a similar credit issue that sunk the company last time?
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Re: GAME woes

Postby Paul » Wed May 25, 2016 10:17 am

I went in to a Game for the first time in ages the other day.

Christ it stank.

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Re: GAME woes

Postby Quietman » Wed May 25, 2016 11:10 am

Did the stench follow you round even after you left?
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